Antimicrobial resistance (AMR) is a global systemic risk to both public health and the economy and is identified by the World Health Organisation (WHO) as one of the top ten global public health threats facing humanity. Through the organisation FAIRR (Farm Animal Investment Risk and Return), the Council on Ethics is participating in two projects to influence companies with links to AMR to be more responsible and transparent.
Background
Antimicrobial resistance (AMR) has been called the ‘silent pandemic’, as it makes it more difficult and in some cases even impossible to treat bacterial infections. It is not only a global threat to public health but also to economic prosperity and growth, posing a systematic risk from both a sustainability and a financial perspective. One activity that plays a key role in this context is animal production. The reliance on growth promotion and prevention in the industry has resulted in animal husbandry accounting for an estimated 70 per cent of antibiotic use globally. Overuse of antibiotics is a significant cause of antimicrobial resistance globally, and is expected to increase as more countries adopt intensive farming systems to meet the growing demand for meat, dairy products and fish. In autumn 2023, the Council decided to engage in two projects through the organisation FAIRR. One project targets pharmaceutical companies with links to animal production, and the other project targets listed fast food chains that are major buyers of animal products and whose overuse of antibiotics is a problem.
Objectives for the project
Two objectives have been set for the projects. Firstly, to influence companies to use antibiotics responsibly throughout the animal protein supply chain, in line with WHO guidelines. Secondly, companies should improve their policies, guidelines and transparency regarding how they use antibiotics. In addition to direct dialogue with the companies, the projects also contribute to experience sharing between different stakeholders connected with AMR. One of the objectives of the project aimed at the pharmaceutical industry (with a focus on animal production) is to develop a dialogue between investors and the pharmaceutical sector and to encourage greater transparency from companies. The project also aims to clarify how and whether these pharmaceutical companies are managing the risk of antimicrobial resistance throughout the value chain, from factory to farm. It also focuses on what actions companies should take to future-proof the long-term sustainability of their antibiotic portfolios, capitalise on the growing demand for alternatives to antibiotics and reduce the spread of antimicrobial resistance.
The Council’s objective for the project, which targets fast food restaurants, is to improve information on how companies reduce the risk of antimicrobial resistance in their animal protein supply chains. The investors in the project will encourage companies to a) disclose existing policies, b) develop antibiotics policies covering all key proteins, and c) set relevant targets that are regularly monitored and evaluated.
Outcome 2023
The Council joined FAIRR and the two projects in September 2023. During the autumn, the Council worked to deepen its knowledge in this area and participated in initial dialogues with the companies in the two projects.
Next steps
The Council will participate in further company dialogues in 2024. The Council will also work to increase knowledge about AMR, both in the AP Funds’ asset management organisations and among external stakeholders.
About FAIRR
The Council is a member of FAIRR (Farm Animal Investment Risk and Return), a global investor network that aims to raise awareness of the challenges associated with intensive industrial animal production and seeks to minimise ESG risks within the wider food system. The network includes over 400 investors, representing a total of over USD 70 trillion in assets under management.
Through FAIRR, the Council has access to experts in the field, help with coordination of company dialogues and analysis of the companies’ work in connection with AMR. FAIRR experts also usually participate in the individual company dialogues.
The Council participates in two FAIRR projects that focus on antimicrobial resistance. The two AMR-related FAIRR projects aim to encourage responsible use of antibiotics in line with WHO guidelines across the entire animal protein value chain, from pharmaceutical companies whose products are used in industrial animal production to the fast food chains that are major purchasers of meat.